Malaysia

1MDB poses fresh threat to Najib – and Malaysia

10 May 2018

With a shock election defeat, the outgoing prime minister's top defence against the $4.5 bln fund scandal has gone. Old enquiries may reopen at home and overseas agencies have less reason to go easy on him. Najib could be tempted into the dangerous politics of mutual destruction.

Markets want soothing after Malaysia poll upset

10 May 2018

Mahathir Mohamad has won a bitterly contested election. The shock victory will rattle investors, who will fret about the country's economic growth momentum and future ties with China. For now, a quickly formed government and clear economic agenda can limit market turbulence.

Viewsroom: Fintech’s growing pains

19 Apr 2018

Upstarts like LendingClub and SoFi need to find ways to keep customers returning – just as traditional banks are fighting back and Goldman Sachs’ digital push into consumer lending takes off. Also: how Malaysia’s prime minister may be re-elected despite the 1MDB scandal.

Malaysia’s strongman can use his second chance

10 Apr 2018

Najib Razak's reputation took a slap with the 1MDB scandal. Still, the prime minister is likely to win a fresh mandate in upcoming polls. That can help him secure a legacy as a reformer, if he handles China's influence adroitly and meets old pledges to cut the role of the state.

Uber races towards IPO with Southeast Asian deal

26 Mar 2018

The U.S. ride-hailing giant is exiting another cut-throat market. It will hand its regional business to Grab, a $6 bln local rival, and take 27.5 pct of the enlarged group. This is a sensible step to prepare Uber for public life – provided Grab can hold onto its leading position.

Malaysia throws cash into middle-income trap

9 Nov 2017

Najib Razak’s new budget lavishes cash on farmers, fishermen and rubber traders. But it is a transparent attempt to divert attention from the prime minister’s corruption woes without boosting competitiveness, narrowing inequality or helping Malaysia escape stagnation.

Anil Ambani’s telecoms empire is slipping away

3 Oct 2017

Now that a merger of its mobile unit has failed, the Indian tycoon is running out of options to keep control of his flagship Reliance Communications while reducing its $7 bln of debt. One creditor has already petitioned for insolvency. Others may soon run out of patience too.

Bunge makes itself slipperier target for Glencore

12 Sep 2017

The ag trader inked a $946 mln takeover of a majority stake in Malaysia’s IOI Loders Croklaan, expanding its business in higher-margin edible oils. The deal looks justifiable. But investors were hoping Ivan Glasenberg's conglomerate would hand them a juicy takeover bid.

Malaysia power IPO will test 1MDB stain

19 Jul 2017

China Nuclear wants to float assets acquired for $2.3 bln from disgraced 1MDB. A Kuala Lumpur listing may smooth local misgivings over Chinese ownership. But it is unclear if investors are ready to look beyond the fund scandal. Recent listings also suggest it will be a hard sell.

Lotte’s Malaysia IPO has bad chemical reaction

4 Jul 2017

The South Korean conglomerate is raising $877 mln through a cut-down IPO of its petrochemical unit. It still ranks as Malaysia's biggest listing since the 1MDB crisis. But a chunky valuation discount to peers suggests toxic air around the issuer and destination is yet to clear.

Dumb and Dumber 1MDB money trail is one to cherish

16 Jun 2017

Cash from the Malaysian fund ended up in a yacht, art, and rights to the film “Dumb and Dumber To”, the DOJ claims. The charges are incredible. But authorities are unlikely to recoup much. And alas, the days of U.S. crusades against global financial crime look numbered.

Felda joins list of Malaysia’s money headaches

7 Jun 2017

The palm oil giant has suspended its chief after auditors raised a red flag. There are echoes of the 1MDB scandal: Felda is state-backed and investors have been burnt in a listing pushed by Prime Minister Najib Razak. It adds to the noise as Malaysia heads towards a key election.

Politics align for Malaysia bank merger

1 Jun 2017

Efforts to squish together the country's banks have repeatedly failed. Now RHB could buy AmBank, creating a $9 bln group. After the 1MDB fund scandal, big shareholders may be keener to do a deal. A rising oil price helps too. The trick will be to keep the structure simple.

Geely grabs a new growth engine on the cheap

24 May 2017

The Chinese carmaker is set to buy 49.9 pct of Proton. Reversing the Malaysian marque’s long decline won’t be easy, especially as a back-seat driver. But it is unlikely to cost much upfront. The Volvo owner’s latest bit of bargain-hunting could help it rev up in Southeast Asia.

Malaysia makes room for better 1MDB property deal

4 May 2017

A $1.7 bln deal to sell a prime Kuala Lumpur development project to a Malaysian-Chinese consortium has lapsed. The two sides disagree about what went wrong. In any case, Malaysia could now do a deal that is better, politically and financially, as it seeks to fix the 1MDB mess.

Malaysia throws cheque book at 1MDB problem

27 Apr 2017

A deal with Abu Dhabi puts Malaysia on the hook for $3.5 bln of the disgraced fund's debt and leaves a dispute over a further $3.5 bln unresolved. That is a costly attempt to patch up relations between the states and avoid potential embarrassment before an election.

Fund-scandal fallout keeps Malaysia on its toes

23 Jan 2017

Prime Minister Najib Razak has more reason to worry about rising domestic costs from the 1MDB scandal than any half-baked investigations overseas. Falling approval ratings have taken the shine off his expected re-election bid, and investors have severely punished the ringgit.

Malaysia’s pivot to China is payback plus

3 Nov 2016

The country is not as desperate as the Philippines for investment. But cozying up to Beijing is one way to express gratitude for China's continued support during the 1MDB scandal. Outside funding can also help Najib meet ambitious development goals - and win re-election.

Asian investment banking is a money pit

20 Sep 2016

Fees from underwriting and deals are up 8 pct this year after a poor start. But only a few big foreign houses are profitable. Fierce competition, global and regional, keeps fees down. Meanwhile, big-ticket Chinese business goes to Chinese firms. It creates the conditions for more banks to retreat.

Malaysia fiasco undercuts Goldman’s standards push

21 Jul 2016

After the financial crisis, the Wall Street firm overhauled its business practices in an effort to avoid big reputational as well as financial risks. But its dealings with scandal-hit sovereign fund 1MDB, spelled out in new lawsuits, cast doubt on the depth of Goldman's changes.